The transfer of a right from one party to another. For example, a party to a contract (the assignor) may, as a general rule and subject to the express terms of a contract, assign its rights under the contract to a third party (the assignee) without the consent of the party against whom those rights are held. Obligations cannot be transferred to a third party except by novation ( www.practicallaw.com/1-107-5796) . An assignment may be either a legal assignment ( www.practicallaw.com/9-107-6754) or an equitable assignment ( www.practicallaw.com/2-107-6540) .
For more information on assigning rights under a contract, see Practice note, Contracts: assignment ( www.practicallaw.com/7-381-7509) .
In finance transactions, assignments may be used as a way to take security over, for example, choses in action ( www.practicallaw.com/2-107-5828) . For more information on security assignments, see Practice note, Taking security over choses in action: Assignment ( www.practicallaw.com/4-201-9675) .